If the demand for a product decreases by 16 percent, the supply elasticity is 1.2, and demand elasticity is 0.80, then the equilibrium price will decrease by 6 percent.
Answer the following statement true (T) or false (F)
False
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Let C = 120 + 0.8y. Assume no government or foreign sectors. At the equilibrium level of income, y* = 200, the level of saving is
A) -80. B) -30. C) 96. D) 160.
When does a government run a budget surplus?
What will be an ideal response?
The largest component of the M1 measure of money is
A) currency. B) demand deposits. C) other checking deposits. D) money-market mutual funds.
Regarding business conditions during the 1930s, which of the following events did not occur?
(a) The number of patents applied for declined. (b) The number of mergers between companies increased in an attempt to increase their consolidated strength. (c) Some interest rates, such as the prime rate, fell to less than 1%. (d) In the early years of the Depression, business investment spending on plants and equipment was not enough to increase or maintain the country's capital stock.